Labour policy brief- hydrogen

In this series of blogs, experts from Just Communications and Project Rome examine Labour’s emerging sustainability policies, how they differ from the current Government’s, and what the impact might be were Labour to prevail in the next General Election.

If your organisation is interested in a more in-depth briefing on these topics please contact julius@justcommunications.co.uk or karl@projectrome.co.uk.

Brief #2 - hydrogen economy

One of the principal strands of the British Labour Party's future energy strategy is their support for plans to use hydrogen as a leapfrog energy vector as the way to ensure zero carbon energy in a post-Brexit Britain. It's a big claim and one which many are looking to debate, as it raises important questions about how feasible this plan is.

 What's strong

Let's start with what Labour is getting right. Hydrogen has long been seen as an effective source of clean energy – but only if used responsibly and safely. The party recognise this and has proposed the creation of a national regulator that will oversee the safe production and use of hydrogen to make sure no corners are cut when it comes to safety standards. This is hugely sensible, particularly given the obvious but rare potential fire hazard posed by certain uses of hydrogen. The public is concerned about this, but perhaps a little too concerned given the data.

The Labour movement's support for the vector comes from a mixture of sources: (1) the regional political pressure from northern council leaders and metro mayors - where the hydrogen is most likely to be manufactured and stored (as evidenced by IPPR North’s recent report, The Hydrogen Powerhouse); (2) larger commercial interests who already have pipes in the ground and largely unionised workforce to service those pipes, and, (3) frankly, what else is on the table to replace natural gas and perhaps even more tricky portable diesel off-grid in time to hit pledges and at scale?

What's wrong

However, there are some problems with the Labour Party's approach. Firstly, they seem to lack a clear plan for how to roll out hydrogen in an effective way. The party has not outlined any specific targets for when and where hydrogen should be used, or which industries it should replace first. This is a missed opportunity, as there would be huge advantages to rolling out household infrastructure to replace gas early and paving the way for easier adoption - we have replaced the network before when Natural Gas replaced Town Gas etc. The real issue is the cost and logistics of replacing/modifying every existing gas boiler in the country (although such a programme would potentially be a huge source of new, green jobs).

In addition, the party has also failed to address how we are going to make sure that hydrogen is produced sustainably. Hydrogen can be created from natural gas as well as renewable sources such as wind and solar power. To ensure the sustainability of this technology, we must focus on renewable production first - so that emissions are kept to an absolute minimum. And if you are going to do that why not cut out the middle man altogether and go straight for completely renewable sources and bet large on electric storage?

What's missing?

Finally, there is still some information missing from Labour’s plan when it comes to hydrogen as an energy vector. The party has yet to address any economic or regulatory issues associated with its rollout – something which will inevitably have a significant impact on both consumers and businesses during the transition period. It would be good for the Labour Party to set out a timeline, detailing when energy companies and other industry stakeholders can expect to start transitioning away from natural gas to hydrogen.

Also, Labour has yet to detail where it sees hydrogen’s place in the future of decarbonising domestic heating. Hydrogen will always have a role to play in the race to net zero for heavy industry and transport, but the big question is whether it’s also the answer for domestic settings. Do Labour have a view on that?

Additionally, while the party has promised to invest heavily in research into affordable, low carbon ‘green’ hydrogen production and usage – they have not made any real commitment to incentivising businesses or individuals who are looking to switch over from traditional power sources. This lack of incentives could make it very difficult for businesses and householders to make the switch – which could have an impact on the overall uptake of hydrogen energy.

Finally, and crucially, Labour needs to ensure that it is ready to take crucial decisions on day one of a Starmer premiership. The country cannot afford any further delays on milestones that have been set by industry, (for example, on the use of blended natural gas and hydrogen). Biden’s IRA and the EUs European Green Deal pose an existential challenge to the UKs green economic future. There is no time for equivocation on these key policy decisions.

 Overall, it’s clear that hydrogen could be a game-changer in the fight against climate change. The Labour Party has set out some ambitious plans for hydrogen energy production and usage – but there is still work to do. With focused research, effective regulation, and incentives for businesses and individuals, we can ensure that this leapfrog technology is adopted safely and quickly – helping us to meet our zero carbon goal sooner than expected.